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HomeMy WebLinkAboutCC AG PKT 2008-07-14 #Y• AGENDA STAFF REPORT DATE: July 14, 2008 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Vince Mastrosimone, Director of Public Works SUBJECT: REJECT BIDS FOR LAMPSON AVENUE WELL PROJECT NO. WT0801 SUMMARY OF REQUEST: The City Council is asked to reject all bids for the Lampson Avenue Well Project, Specification No. WT0801 and authorize staff to re-advertise the project for bids. BACKGROUND: The adopted 2003 Water Master Plan identified a deficiency in water production in the northern portion of the city. The master plan recommended a new well to produce potable water and fire flow to meet current capacity needs and demands. In the 2007/08 Budget, City Council allocated $2,000,000 in the City's Water Enterprise Funds Capital Projects budget for construction of the Lampson Avenue Well Project, Phase 1. Engineering staff prepared a full bid package to advertise and solicited for bids for the Lampson Avenue Well Project. The scope of work includes drilling the water well and monitoring water quality. On May 22, 2008 the City Clerk's office received and opened sealed bids. Four bids were opened with the following results: # COMPANY NAME BID AMOUNT 1 Palm Springs Pump & Drilling $1,830,685 2 Bakersfield Well & Pump, Co. $1,836,250 3 Layne Christensen, Co. $2,098,000 4 Southwest Pump & Drilling, Inc. $2,118,810 Agenda Item Y Page 2 Inconsistencies were found in the low bidder's bid package that pertained to having the necessary licenses to perform the work required. Staff reviewed the language in the contract documents referencing licenses and determined that it needed further clarification and could indeed cause confusion to the bidders. Staff spoke to the low bidder and informed them of our confusion. Staff recommends that all bids be rejected due to unclear language in the contract documents and possible legal challenges from both the low bidder and the second low bidder depending on award. Re-advertising with further bid document clarifications will be done immediately. Anew bid date is set for July 30, 2008. FINANCIAL IMPACT: In the approved 2007/08 - 2008/09 Budget, Water Capital funds are budgeted for Project No. WT0801 in the amount of $2,000,000. The engineer's estimate for the well construction was $1.6 million. Funding Water Capital Fund $ 2,000,000 Expenses Design Engineering $ 340,000 • Construction $ 1,600,000 Construction Engineering $ 60,000 Total $ 2,000,000 RECOMMENDATION: It is recommended City Council reject all bids for the Lampson Avenue Well Project, Specification No. WT0801 and authorize staff to re-advertise the project for future bidding. S B E NOTED AND APPROVED: ince Mastrosimone David Carma ,City Manager Director of Public Works P:1042 Englneenng, CIP and General Adntln FIes1042 Counal Reports and Rem1042 Coundl Memos 20081200&07-14weJect Bids for Lempson Avenue Well • Pro~ed.doc PROOF OF PUBLICATION (2015.5 C.C.P.) • STATE OF CALIFORNIA, County of Orange I am a citizen of the United States and a resident of the county afore- said; I am over the age of eighteen years, and not a party to or inter- ested in the above-entitled matter. am the principal clerk of the printer of the SEAL BEACH SUN, a newspaper of general circulation, printed and published in the City of Seal Beach, County of Orange and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of Orange, State of California, under the date of 2/24/75. Case Number A82583; that the notice of which the annexed is a • printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: all in the year 2008. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at B , CA. th's day of , 2008. Signature • PUBLICATION PROCESSED BY: THE SEAL BEACH SUN 216 Main Street Seal Beach, CA 90740 (562) 430-7555 This space is for the County Clerk's Filing Stamp Proof of Publication of ............................................... ...............................................